How to Price Handmade Work in NZ
By Little Stall · Updated
Most makers underprice. It is easy to count the wax and forget the hours, the market fees and the jars that cracked. A simple formula won’t make every price perfect, but it will stop you paying to make things for other people.
Start with what it actually costs
Add up the materials for one item: wax, wick, fragrance and jar; yarn and buttons; clay, glaze and firing. Then add the extras that are easy to forget: labels, packaging, the share of a fragrance bottle you used, and the pieces that don’t make it.
- Materials for one item
- Packaging and labels
- A share of waste and seconds
- Your time, at a real hourly rate
- A share of overheads: market fees, tools, kiln power, website
Pay yourself for your time
Time it honestly, from setting up to cleaning up, and divide a batch by the number of items it makes. Pick an hourly rate you would accept for any other work. If the resulting price feels too high, look at ways to make things faster in batches before you drop your rate.
Add your costs, fees and a margin
Materials plus time plus a share of overheads gives you your cost. Add a margin on top. That margin is what lets your little business grow, pay for new tools, and survive a slow month.
Allow for payment fees if you take cards. Stripe charges a processing fee on each card payment; Little Stall itself is NZ$20 a year and takes nothing from your sales. If you sell wholesale to shops, they will usually expect around half your retail price, so check your retail price leaves room for that.
Know where GST and tax come in
In New Zealand you must register for GST once your sales go over NZ$60,000 in 12 months; below that it is optional. If you are registered, your prices need to include GST. Income from selling your work may also be taxable, especially once you are selling regularly to make money. IRD’s website explains the difference between a hobby and a business, and an accountant can help if you are unsure.
Check against the market, then hold your price
Look at what similar handmade work sells for, not what mass-made versions cost at a chain store. Your buyers are paying for something made by a person. If you are cheaper than other makers by a long way, that is usually a sign you have left something out.
Use pricing options for sizes and sets, so a buyer can choose a small candle or a gift set without you doing a separate quote each time.
Put your next order in one place.
Your own shop, order records and automatic buyer updates. Try Little Stall free for 14 days, then NZ$20 a year. No card to start.
Start your free trial